Co-op Union seeks amendment of Act

Stating that multi state co-operative banks enjoyed an edge over co-operative banks registered in Gujarat, the Gujarat State Co-operative Union (GSCU) has demanded that amendments be made in the Gujarat State Co-operative Act (GSCA), in line with amendments of the Multi-State Co-operative Act (MSCA) by the Central government.

The Gujarat-based multi state co-operative banks are governed under the MCSA. The state government has formed a committee six months back for suggesting amendments in the Gujarat State Co-operative Act but so far the committee has submitted any recommendations and has not met even once, stated office bearers of the GSCU on Thursday.

"The globalisation and WTO have poised major challenges for the co-operative sector in the country and we are demanding the state government to make necessary amendments in the State Co-operative Act in accordance with the amendments of the Multi-State Co-operative Act by the Centre to make the co-operative sector self reliant," said Ghanshyam Amin, chairman, GSCU, in Ahmedabad on Thursday.

The co-operative movement in Gujarat and the country started with the Co-operative Act in 1904 and has completed its 100 year this year.

The Indian co-operative movement is the largest in the world and at present there are more than 5,45,000 co-operative societies in the country with over 23 crore members.

Most of the villages are under the preview of the co-operative sector in Gujarat and over 75 per cent of the villagers are earning through some form of co-operative activities.

The union demanded for the amendments in the State Co-operative Act, which include implementation of new technology in the various areas of the co-operatives, measures to make co-operatives self reliant and self sufficient with least interference from the government.

"In Gujarat milk producers and the sugar producers are good example for the success in the co-operative sector. Amul is the largest milk producing body and Bharwali sugar factory is the largest sugar factory in the country," said Amin.

The credit for the cooperative sector in the state was majorly provided by the co-operative banks like Gujarat State Co-operative Bank, District Co-operative Banks, Co-operative Bank of Rajkot and Kalupur Commercial Co-operative Bank among others.

"With the recent cases of defaults by co-operative banks in the state, small depositors are losing faith in the cooperative sector and the sector needs to be revived with the amendments in the State Co-operative Act," said Amin.

The union, with the help of RBI, is conducting various programmes at the district level to spread about the co-operative awareness among the masses and to improve the efficiency in the co-operative sector.